CHICAGO—Statewide home sales did not increase as much in October as they did in previous months, according to statistics just published by the Illinois Association of REALTORS®. At the same time, median prices increased and available inventory shrunk. In October, a total of 12,349 homes were sold, an increase of 3.7% over last October. In September, the state saw an increase of 19.8% over September 2012. But the median price for homes in October was $153,000, up 13.8% from October 2012.
In addition, the association's data show that 66,433 units were available in October, down 18.3% compared to last year.
"The intense demand for housing this year has steadily drawn down the inventory of homes on the market,” said Phil Chiles, president of the state association and broker-associate with The Real Estate Group in Springfield. "As a result, homebuyers will often find they are paying more for a home than they did a year ago, and they may have to work harder with a broker to find a home that's the right fit for them due to the lack of inventory."
Chicago's metropolitan area experienced a bit more of a pickup than the state as a whole. In the nine counties that comprise the Chicago metropolitan area, for example, a total of 9,303 homes, including condominiums, were sold, an increase of 9.6% over the previous October. And city of Chicago homebuyers closed on 2,231 homes, up from 2,076 in October 2012, a 7.5% increase. The median price of a metropolitan area home in October 2013 was $175,000, up 14.4% from $153,000 in October 2012.
“While the partial government shutdown has certainly had a profound negative effect on the housing market's continuing recovery, sales and prices are forecast to return to more robust growth rates over the next three months,” noted Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois. “The declines in consumer sentiment suggest that a longer-term resolution to the government fiscal tensions would provide conditions that would significantly help the housing market.”
"Lower inventory options continue to raise pricing in the city as motivated, qualified buyers look to make their move as lower interest rates afford more value for their investment,” said REALTOR® Matt Farrell, managing partner at Urban Real Estate and president of the Chicago Association of REALTORS®. "As the market continues to correct itself, buyers will appreciate increased value on their long-term investment. Absorption of distressed properties being rehabbed and resold will also continue to add value to the communities they are in.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
